Video on Demand Viewers Don’t Mind Watching Ads for Free Content

The rise of video-on-demand (VOD) programming choices is not only a great benefit to viewers—it also opens more opportunities for advertisers and content creators to reach them. But advertising strategies should be navigated carefully, as viewers are looking to cut through the clutter.

Many consumers see value in ads, but the value proposition must be right. In fact, more than half of global respondents who say they watch VOD (51%) programming also say they somewhat or strongly agree that ads in VOD content give them good ideas for new products to try. And importantly, nearly six-in-10 (59%) say they don’t mind getting advertising if they can view free content. This sentiment is particularly strong in North America, where 68% are willing to trade their time and attention for free programming.

What’s clear, however, is the need for more relevant ads that speak directly to consumers. Two-thirds of global respondents say most ads in VOD content are for products they don’t want (66%).

Other findings from the global video-on-demand report include:

Nearly two-thirds of global respondents (65%) say they watch some form of VOD programming, which includes long- and short-form content.

VOD is becoming a part of daily viewing habits for many. Among those who watch any type of VOD programming, 43% say they watch at least once a day.

More than three-quarters of global respondents (77%) who watch VOD programming agree that they do so because they can view at a time that is convenient for them.

Among those who watch VOD programming, Millennials and Gen X respondents are the most likely to agree that they like to catch up on multiple episodes at once.

For more detail and insight, download Nielsen’s Global Video-on-Demand Report. If you would like more detailed country-level data from this survey, it is available for sale in the Nielsen Store.